Good afternoon, dear traders!

Markets took a break at the beginning of the week. Last week’s race seems to have stopped. At the moment big players are re-evaluating forecasts for the US dollar in regards to the Fed's decision on interest rates cut.

Last week, the dollar lost ground against major currencies following the Fed’s comments with respect to monetary policy. Interest rates in the United States are too high, and this affects the pace of economic growth.

The USA is not the only country where rates could be cut to weaken the national currency. For example, Mario Draghi has stated that the ECB is ready for taking any measures to stimulate economic growth in the Eurozone. So dollar recovery is quite possible in the future.

In terms of news, Monday is likely to be calm. We'd only point out the following:

  • 17:30 - national activity' index according to the FRB of Chicago;
  • 19:30 - activity in the manufacturing industry (the FRB of Dallas).

Both news are weak and will hardly affect the market.

USDCAD - opening deals for sale after correction takes place

Aggressive imbalance has formed at the level of 1.3399. Short positions will be considered only after deep correction of the last downward movement takes place. The pair is traded at the price of about 200 pips below this level, so signal’ working out might take more than one day.

Place Sell Limit order at 1.3399 with a stop at 1.3336. The targets are located at 1.3362 and 1.3389.

CADCHF - there's an entry point for purchasing

A reversal pattern began to form at the end of the previous week. On Monday, at the opening of the market we received W-shaped model's second wave with an aggressive global imbalance at 0.7396. Since the retest of this level has already taken place, one can enter the market with stop located at 0.7375.

According to the Safe rule, targets for such positions are placed at 0.7418 and 0.7462.

GBPNZD - sell signal is being formed

We are interested in how the chart will behave near the level of 1.9305. This is a global imbalance, formed on Friday and Monday movements; one can sell from this level. At the beginning of the week GAP was received, it has already been covered, and downward movement is developing.

In order not to miss the signal, it's recommend to use Sell Limit order with a stop at 1.9363. Fix profit at 1.9248 and 1.9132.

EURJPY - testing of the level 121.28 and subsequent growth are expected

Last week the pair was trying to approach the round level of 121.00. Today a false breakout of this support has taken place followed by the subsequent sharp market reversal. There is no obvious support segment nearby, therefore the global imbalance at 121.28 is considered aggressive; the lot we are working with should be reduced by 4 times.

Buying will be performed only after testing the level 121.28 from above takes place. Stop is placed at 120.89, take profits are at 121.67 and 122.46.

Online trading session with our traders is scheduled for Tuesday. Within the session entry points will be analyzed and deals will be made in the online mode - you are invited to simply copy them and earn your money. The event is scheduled for 11:30 CET, so it's recommended to be in front of your monitors at this time. To get a reminder and access to the broadcast, follow the link below to sign up for the webinar.

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